QUESTION 3

While a given firm's general strategic position may vary, depending on, for instance, its size, industry and geographic dispersal, Multinationals (MNCs) make strategic choices based on economic and political imperatives. Within this context, the MNCs have specific expectations for each of its foreign subsidiaries, cooperative ventures, and other forms of operation modes, in terms of market performance and contribution to total profits and competitiveness.

When evaluating subsidiary performance against these expectations, however, it is important to recognize various constraints that may affect goal attainment. Discuss FOUR (4) constraints and provide suitable examples to support your answer. (10 Marks)